In a recent eight-minute conference call, leaders from Bally's Corp provided updates on its permanent casino project in Chicago. Chairman Soo Kim and Wanda Wilson, chair of the Bally's Chicago board, addressed concerns following a prior announcement about altering construction timelines for the non-gaming aspects of the project. This decision came in the wake of the city's legalization of video gaming terminals (VGTs) earlier this year.
Kim emphasized the company's ongoing commitment to the Chicago casino, aiming to refute claims circulating in the media about halted or slowed construction since the updates given in early August. He stated, "Construction continues every day, and there are approximately 1,000 skilled tradespeople working on the construction of the permanent Bally's Chicago resort."
The casino is still projected to open in early 2027, according to Kim, who indicated that Bally's is carefully adjusting how various elements of the development are sequenced to fulfill its Host Community Agreement. He also mentioned that opportunities for site tours will soon be offered to investors and stakeholders. "Investors should view our actions through a straightforward lens: We are protecting the value of significant investments we're making in Chicago while faithfully executing our contractual obligations," Kim said. "And let me say this again – we remain fully committed to Chicago."
During this same call, Kim provided fewer specifics than those offered before the Chicago City Council's License Committee, where George Papanier, Bally's president and interim CFO, assured officials that the company is on track to deliver the event center, 100 hotel rooms, and required food and beverage components by early 2027. However, Papanier noted that Bally's is reconsidering some amenities—around 12% of the project—as it assesses the potential impact of VGTs. The hotel's plan includes a total capacity of 500 rooms.
The city council approved the legalization of VGTs in its latest budget, which was implemented in January despite opposition from Mayor Brandon Johnson. The mayor and council members have been engaged in discussions regarding this issue throughout the year, leaving it largely unresolved. Although Johnson has not publicly stated whether he believes Bally's can meet the 2027 opening timeline, he has previously expressed commitment to projects like this one that support economic development and create job opportunities across the city. He commented on social media, "We appreciate Bally’s partnership and the thousands of construction workers helping bring Bally’s Chicago Casino to life – a major investment in our city’s future."
This year, the Illinois Gaming Board approved 65 VGT license applications within the city. VGTs currently represent the most lucrative gaming segment in Illinois, generating higher revenue and taxes than traditional brick-and-mortar casinos. Papanier highlighted that the components of Bally's Chicago undergoing re-evaluation are directly related to the increasing presence of VGTs. He cautioned that a broad increase in these licenses could potentially affect casino revenue by 30% to 50%, insisting that it would be "irresponsible" to push forward without a clearer understanding of this evolving landscape.
On the trading floor, Bally's stock rose by 7% to reach $9.84 following the call. shares had previously fallen 30% over the past month, driven by uncertainty in Chicago and concerns regarding the company's future viability after its Q2 earnings report. This pattern followed the resignation of former CFO Mira Mircheva on September 4, with Papanier stepping in as interim CFO.
The ongoing disputes regarding VGTs and the construction adjustments reflect the challenges Bally's has faced since securing Chicago's only casino license in 2022. Previous setbacks included work stoppages prompted by debris issues and unapproved contractors, in addition to a significant $800 million funding shortfall that was ultimately resolved through a financing pact with Gaming and Leisure Properties. A redesign of the hotel was also necessitated by potential interference with city water lines.
In the past, the Illinois Gaming Board ordered temporary work halts on the casino due to concerns over ties between an unapproved dumpster service and organized crime. Bally's has received two years' worth of extensions for the permanent project. Though state law generally allows for two-year temporary licenses, the Illinois Gaming Board granted an extension to three years in 2023, with deadlines pushed to this upcoming September. Bally's ultimately secured an additional year's worth of extensions through a provision in the state’s omnibus revenue bill passed in June. Without this most recent extension, Bally's would have needed to shutter its temporary casino at Medinah Temple until the new venue was completed, resulting in a significant revenue loss. Kim had previously remarked that closing the temporary site would not have been "the end of the world."
On another front, Bally's is progressing with its ambitious $4 billion Bally’s Bronx resort project in New York City. The company was awarded one of three licenses in NYC last year, alongside Resorts World New York City and Hard Rock's Metropolitan Park. Recently, Bally's announced it secured $560 million in financing from WhiteHawk Capital Partners to support further development and general corporate needs for the Bronx project. This funding is expected to close within the quarter.
Kim stated, "This important financing allows us to progress the pre-construction planning process so that we are ready to complete the remainder of the capital raise and remain on schedule." Bob Louzan, managing partner at WhiteHawk, noted the financing reflects the ability to offer adaptable capital solutions for complex transactions to support Bally's project development.
According to Bally's previous application materials in New York, construction was slated to begin eight to nine months post-licensing approval, which coincides with this month. The Bronx project aims for a single-phase opening in 2030 if all goes according to plan.
